The Albuquerque Economy and Employment thread (credit, to buy, bankruptcy)
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Haven't heard any big news about government agency layoffs, be they base-related or city/state government related. Could the losses simply be due to attrition?
DOE has been offering various retirement buyouts apparently throughout their agency. At my wife's location at KAFB four out of five employees have either taken or signed up to take a buyout...
From memory I seem to recall a goal of reducing 15,000 feds to 10,000 in a two to three year period by by the start of FY2014, in several programs.
With nearly 4,000 jobs lost in ABQ in 2012 and 200 more at HP in Rio Rancho these are not positive signs economic future in Albuquerque. Our neighboring states are seeing job growth. Some may blame the minimum wage increase , though Santa Fe has some of the lowest unemployment in the state and their minimum wage is among the highest in the US. There's more to the story, though Gov. Martinez did not have much of a compelling statement regarding the job losses. She's been a dissapointment in this regard. What is really stifling job growh here?
One thing that's discouraging people from moving here is the lousy school system. Many out-of-state folks with school-age kids take one look at the graduation rate and either decide to move elsewhere.
Last edited by Poncho_NM; 01-11-2013 at 07:37 AM..
Reason: fix quote
One thing that's discouraging people from moving here is the lousy school system. Many out-of-state folks with school-age kids take one look at the graduation rate and either decide to move elsewhere.
I think that is way down the list. As with anywhere there are good and bad schools.
One of the issues with growth and expansion of businesses and corporations in and to NM is our business tax environment. In an article a couple days ago there was a graphic with the thousands of jobs coming into our neighboring states but we are losing jobs.
Corporate Tax Rates
TX does not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates.
AZ 6.968%
CO 4.63%
UT 5%
OK 6%
NM 7.6% on over $1MM (which most corporations moving jobs would be in)
According to the Tax Foundation the NM vs. its neighboring states rank as follows with regards to 2013 Business Tax Climate
Unfortunately, though ABQ's unemployment rate is fairly low by national standards, it is losing jobs as is New Mexico. Month after month as reported by the ABQ's Journal Outlook, New Mexico has had negative job growth, and is usually the ONLY state in the entire West that is negative.
I don't think it is the reputation of the schools or tax rates that are holding back growth in ABQ. The city prospered during the 2000 to 2010 decade (more towards earlier and mid) when those factors weren't determining growth.
It is mystifying why we are stuck in a kind of funk and it still feels like the recession is biting hard here. Since the Great Recession of 2008 it has been government --- federal jobs that have taken the hit. Unusual for government job-heavy ABQ.
Lack of vision, failure of leadership? The city has stalled and it feels like it.
New York City went through a terrible period during the late 60s and 70s well into the 90s where the city went on the skids and people were leaving in droves. The city had a bad reputation for crime, unfair business restrictions, bad schools, etc. But with the dynamic leadership of Mayors Giuliani and moreso Bloomberg, the city until recently has renovated itself and became far more prosperous than ever.
ABQ needs more dynamic leadership right now, not caretaker management.
Nearly every city in the country prospered by default in the early to mid 2000's. Most of it from easy lending practices and over the top housing growth. NM was getting a boatload of retirees and second home buyers from the west coast and beyond who could easily get financing for these properties. That came to a screeching halt in 2009 (two years after the recession started on the coasts). During that same period though, aside from growth in the construction industry, there was not a huge amount of private industry growth coming here to create jobs for all these new transplants).
I have attended numerous economic development meetings in the past 2 years that included discussion from local mayors, the Abq development companies, people from the roundhouse,etc. They are trying desperately to lure companies, big and small, even foreign companies looking for hub offices in the US, to Abq. Their response is that due to unfavorable business tax structure, undereducated work force, mediocre public schools, high crime rates, income demographics and a myraid of other reasons, most of the companies they have courted have chose other places to take their business. These are simple responses to much more disturbing and underlying problems with NM as a whole. And I don't care what political affiliation one belongs to, its a known fact that NM as a 'sanctuary state' doesn't help matters either.
HP just laid off a few hundred (and transferring these jobs to Atlanta). Intel is continuing to shrink its production here (while it increases its footprint in Chandler AZ and Beaverton OR. Martinez has done a good job working to chase away the film industry, (and while the incentives may need adjustment, it certainly would have been better to wait a few years until the film industry was more rooted in NM)
Without some major private industry investment in NM, the economic future for the state, and Abq as its biggest city isn't looking rosy in the short term. Officials in the state that don't want change and keep the good ol boy system rolling along are the ones dragging the entire state economy down.
The recent article in Forbes encouraging business not to locate here, calling NM, among about 8 or so others, 'death spiral' states, may have some over alarmist statements in it, but in reality is mostly factual in its analysis and states some harsh realities. The ratios are correct and bottom line the state relies way too much on government employment and assistance. (if you google 'death spiral states' you'll see a number of entries relating to the article).
NM needs a facelift and a wake up call to find ways to change its attractiveness to outside business. As long as we are a capitalist society that constantly demands growth and 'more', 'more', 'more' of everything, the state either learns to accomodate to attract business or it will continue sliding backwards. BTW, a great site to check out for statistical info on areas of the country is: 247wallst.com
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ABQ loses nearly 4,000 jobs in 2012
